- A Potential Trade in Biotech/Genomics
- a Potential Investment in Genomics.
- Reason for the Current Rally and when it will end.
- Small-Cap and Micro-caps will outperform the FANGS for years.
- Long-term money flows into to anything Physical
As a potential “trade” – You might look at LABU as a short term trade. It sure seems to me that this is going to pop next week. Technically it is nicely set-up with the share price of LABU above its rising 20-day, above the 50-day and above the 150-day moving average with the price of LABU above both. Money seems to be coming into Genomic stocks individually. This is levered three times so be careful.
I am bit more active in short-term trading because I am solidly set in my longer-term approach of buying anything physical – Oil & Gas, Mining metals & commodities, that I am a bit bored short-term.
We are seeing the rally in the market continuing in the near future so am trying to take advantage of the environment for some three to five-day up to 30 to 60-day timeline trades.
Potential “Investment” in Genomics, a non-levered, ETF perspective, Cathie Wood’s ARK Genomics ETF (ARKG) is approaching a break-out point in crossing above its 150-day moving average. Currently at $33.43, the two year high on ARKG was $115.15.
We place ARKG in the Stage One Chart pattern, the base building phase, about to enter Stage Two Chart phase – the rally phase.
Two Videos I recommend that are timely in 1) defining the why of the current short-term rally situation but also 2) that addresses the longer-term positioning for the big run in natural resource stock prices.
This first is from – Real Vision – Two different commentators in this video.
- Andreas Steno Larsen discusses why the market is in rally mode and suggests it will end abruptly when the Fed shifts from now providing liquidity to the system due to approval to the Nation budget limits to pulling money out of the system after the Budget limits are reset. Big info on timing.
- The second interview is with a money manager principal, Francis Gannon at Royce. Royce has for decades been a top manager in annual performance in micro and small cap money management. I strongly recommend the Royce family of funds. I have tracked and been aware of Royce since the 1980’s. The discussion in this video is on inflation & why this decade will see small and micro caps outperform the FANGS, the best returns from the last decade. This is a very important discussion on future investment money and being in tune with investment flow trends that last five to ten years forward.
“Recession: Past, Present, or Future?”
The second is an Interview with Rick Rule on the bottle-necks in physical products like oil & gas, precious & industrial metals and commodities. This is discussed in the context of a five to ten-year investment trend. It is estimated that this trend is about 1/3 of the way into the process of three waves with the historic third wave being the most powerful and dramatic.
“Rick Rule: Shortages In Key Natural Resources To Define Next Decade”
Good fortune to us all. Have a great week-end. Be kind to and hug those you love and are close to you.
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Written January 27, 2023, by Tom Linzmeier, for Tom’s LOTM Blog at https://lotm.substack.com/.
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